Operational arrangements

CBL holds a cash account at the custodian. Against payment settlement takes place on the custodian’s account at at the local central bank.

Bridge settlement

No

Shaping facility

No

Partial settlement

No

Settlement penalty fees

No

Pre-matching

Yes

Back-to-back processing

No

Allegements

No

Automatic compensation

No

Registered securities

Yes

Multi Market Securities

No

Lending and borrowing

Yes

For debt securities only.

Proxy voting

No

Investment Funds

No

Liquidity Hub Connect

No

Sale and purchase of rights

No

Repo services

Yes

Market restrictions

No

FTT

No

Daily reconciliation

Yes

Bilateral cancellation

No

Settlement finality

Settlement in the Central Bank of Uruguay system is final and irrevocable.

Legal arrangements

The below section is based on the legal opinion that was issued on1 March 2017. The information is provided for guidance only and should not be considered in isolation or as constituting a complete or definitive legal advice on any specific matter.

No insolvency proceedings against the Custodian

Confirmed

Liability for negligence

Confirmed

Book-entry regime with in rem rights

CBL has a contractual right against the custodian regarding the securities held in custody by the custodian on behalf of CBL. A contractual right is not similar to a right in rem. On the contrary, the right in rem confers a direct right over the securities while the contractual right confers a "personal" or "contractual" right that, in this case, will be against the custodian.

Recognition of nominee concept

Confirmed. CBL will be recognised as account holder of the account(s) held in its name but on behalf of its underlying customers. However, precision that under local law does not recognise the nominee concept, as beneficial owners do not have a direct claim over the securities. Beneficial owners only have a contractual right against the nominal owner (the custodian in this case) to recover their securities deposited with the custodian or to receive the proceeds thereof.

No right of retention to the custodian

Confirmed

Segregation of assets at the Custodian

Confirmed

No right of use

Confirmed

No upper-tier attachments

Local law does not address the upper tier attachment of securities involving entities such as the custodian. Upper tier attachment does not exist in Uruguay.

Insolvency of the custodian with no impact on CBL's rights

Confirmed

Shortfall pro-rated among holders

Shortfall is not regulated under local law.

Settlement finality in case of insolvency

The Insolvency Act does not provide for the irrevocability and unconditionality of non-provisional transfers and that in certain scenarios a transfer of securities could be challenged in the context of a bankruptcy. However, Law 18573 provides some protective wording as regards to irrevocability of instructions in case of insolvency only to instructions made within the scope of a compensation and liquidation system of payment and securities. Said protection can only be analysed on a case-by-case basis.